Kraft Heinz

The Kraft Heinz Company
Public
Traded as
Industry Food processing
Predecessors Heinz
Kraft Foods
Founded July 2, 2015 (2015-07-02)[1]
Headquarters Pittsburgh, Pennsylvania, US
Area served
 Worldwide
Key people
 Alex Behring (Chairman)
John Cahill (Vice chairman)
Bernardo Hees (CEO)
Products Kraft Macaroni and Cheese
Owner Berkshire Hathaway (26.8%)
3G Capital (24.2%)
(remaining 49.0% Publicly-owned)[2]
Divisions Kraft
Heinz
Website www.kraftheinzcompany.com

The Kraft Heinz Company is an American worldwide food company formed by the merger of Kraft Foods and Heinz.[3] The merger was backed by 3G Capital and Berkshire Hathaway, which invested US$10 billion in the deal, making Kraft Heinz worth about US$46 billion.[4][5] In 2015 the Kraft Heinz Company had 13 different brands with $500 million or more each in annual sales.[6]

Merger

The merger was agreed by the boards of both companies, with approval by shareholders and regulatory authorities.[3][6] The new company became the world's fifth-largest food and beverage company[7] and the third-largest in the US.[3] The company is headquartered in Pittsburgh, the headquarters of Heinz.[8] The companies completed the merger on July 2, 2015.[1]

Under the merger, Kraft's shareholders received 49% of shares in the combined company, plus a one-time dividend of US$16.50 per share.[9] Fortune reports that sluggish growth for Kraft in the US market is due to consumers turning to natural and organic ingredients.[10]

Alex Behring, 3G Capital's managing partner, is the chairman of the new company; Bernardo Hees, Heinz's chief executive officer (CEO), is the CEO of the new company; and John Cahill, Kraft's CEO, is the vice chairman of the new company.[10]

The merger did not affect the naming rights to Heinz Field, home of the Pittsburgh Steelers.[8]

See also

References

  1. 1 2 "The Kraft Heinz Company Announces Successful Completion of the Merger between Kraft Foods Group and H.J. Heinz Holding Corporation" (PDF). The Kraft Heinz Company. 2 July 2015. Archived from the original (PDF) on 14 July 2015. Retrieved 23 January 2015.
  2. ↑ "Kraft Heinz Company Proxy Statement, March 3, 2016". The Kraft Heinz Company. 3 March 2016. Retrieved 14 November 2016.
  3. 1 2 3 "Kraft Foods to merge with Heinz". BBC News. 25 March 2015. Retrieved 9 October 2016.
  4. ↑ "Kraft Foods to merge with ketchup maker Heinz". Reuters. March 25, 2015. Retrieved March 25, 2015.
  5. ↑ "3G Capital, Berkshire to Buy Kraft Foods, Merge It With Heinz". Bloomberg. March 25, 2015. Retrieved March 25, 2015.
  6. 1 2 "H.J. Heinz, Kraft Foods to merge". Institute of Food Technologists. 25 March 2015. Retrieved 28 March 2015.
  7. ↑ Nolan Feeney (25 March 2015). "Kraft and Heinz Merge to Become World's 5th-Largest Food Company". TIME magazine. Retrieved 9 October 2016.
  8. 1 2 Teresa F. Lindeman (25 March 2015). "Officials: Heinz Field name will not change with merger deal". Pittsburgh Post-Gazette. Retrieved 9 October 2016.
  9. ↑ Giammona, Craig. "Kraft Foods, Heinz to merge in deal backed by Warren Buffett, Tim Hortons owner". Financial Post. Postmedia Network. Retrieved 27 March 2015.
  10. 1 2 "1. Meet the new Kraft Heinz Company.". Fortune. 25 March 2015. Retrieved 9 October 2016.

Further reading

External links

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